9911796707
TMI Blog2016 (9) TMI 1496X X X X Extracts X X X X X X X X Extracts X X X X ..... (Act). 3. The Assessee is an individual. He filed return of income for AY 2010-11 declaring total income of Rs. 2,04,600/-. During the year assessee has shown to have received cash gifts of Rs. 1 lakh each from (1) Sri Sunil Kr. Jagnani, brother of the assessee, (2) Sri Kedar Nath Jagnani, father of the assessee and (3) Smt. Sita Devi Jagnani, mother of the assessee. Gift declarations by the Donors were filed before the AO. All the donors were income-tax assessees and their return of income, copy of balance sheet and computation of income were filed. The AO noticed from the computation of income filed in case of the donors that (1) Sri Sunil Kr. Jagnani was having main source of income from retail trade and income from this source had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on oath, it was very surprising that Sri Sunil Kr. Jagnani cannot manage his family on his own and he is making gift to his brother who is well established. Hence, the AO held that the creditworthiness of the donor is not proved and also the source and genuineness of the gift were also not proved since the gift is made in cash. 5. As far as Sri Kedar Nath Jagnani and Smt. Sita Devi Jagnani is concerned, they did not appear in response to summons u/s 131 on the ground that they are out of station. However, the AO on perusal of the copy of return of income, balance sheet and computation of income was of the view that they also did not file any evidence to show purchase or sale etc. against which income has been sown at a very high rate of n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee. The only aspect to be considered is about the creditworthiness of the donors. The returns filed by the donors showing the gift and the source of funds for making the gifts have already been disclosed by the donors in their returns of income. The AO of the donors have not disbelieved the capacity of the donors to make the gifts in question. Once the three facts viz., identity of the creditor, his capacity to advance the loan and the genuineness of the transaction are established, then the onus shifts onto the Department. The Assessee in the present case has by filing the documents referred to in the order of assessment prima facie discharged the burden cast on him u/s.68 of the Act. Once the aforesaid three facts viz., identity of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
